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Outlier detection is an extremely important task in a wide variety of application e g frand detection, identifying computer network intrusions and bottleneck, credit card fraud, criminal activities in e-commerce. In this paper we are concerned with outlier detection using K_means clustering. In this case number of cluster, is regarded as parameter and incrementally added until we get small cluster and regarded as a collection of outlier. Finally it is illustrated how this method work on sets of data.